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CS Executive · Economic, Commercial and Intellectual Property Laws · Law relating to Foreign Exchange Management

Meera, a resident of India, has disclosed foreign immovable property held abroad and brought it back into India during adjudication proceedings, after an earlier seizure of equivalent Indian assets under section 37A(1). What may the Competent Authority or Adjudicating Authority do on her application?

The authority may pass an appropriate order as it deems fit, including setting aside the seizure, after giving a hearing to Meera and the Directorate of Enforcement. This follows from the proviso to section 37A(4), which applies when the asset is disclosed and brought back into India.

  1. ANothing; the seizure must continue until adjudication ends
  2. BPass an appropriate order as it deems fit, including setting aside the seizure, after hearing her and the Directorate of EnforcementCorrect
  3. COnly reduce the penalty to ₹2 lakh without touching the seizure
  4. DDirect that the property be confiscated automatically to the Central Government

Explanation

The proviso to section 37A(4) says that if the aggrieved person discloses the asset and brings it back into India at any stage, the authority, after hearing her and the Directorate of Enforcement, may pass an appropriate order including setting aside the seizure. Continuing the seizure regardless is not what the proviso provides.

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